Coin Market Collapses After Failing to Secure '60 Votes'... $300 Million Forced Liquidation Due to CLARITY Act Rejection

Cryptocurrency market cap plummets to $2.58 trillion... $300 million in long positions liquidated due to CLARITY Act rejection

▲ Coin market plummets due to CLARITY Act rejection... Market cap could fall to $2.53 trillion / AI-generated image

The cryptocurrency market plummeted by over 4%, with its market capitalization falling below the $2.6 trillion mark. The rejection of the CLARITY Act, a US cryptocurrency market structure bill, in the Senate procedural vote dashed regulatory expectations, leading to a cascade of approximately $300 million in long position liquidations and exacerbated selling pressure due to rising Treasury yields and oil prices.

According to cryptocurrency market tracking site CoinMarketCap on September 15 (local time), the total cryptocurrency market capitalization decreased by 4.03% over 24 hours to $2.58 trillion. The correlation between the S&P500 and the cryptocurrency market was 78%, indicating a sensitive response to macroeconomic variables alongside traditional risk assets. In particular, expectations for regulatory clarity receded as the US Senate failed to secure the necessary 60 votes in the cloture vote for the CLARITY Act, preventing the bill from advancing.

Immediately after the vote's rejection, profit-taking and leveraged liquidations combined to rapidly widen the decline. Within minutes, approximately $300 million in cryptocurrency long positions were liquidated in a chain reaction, and Bitcoin (BTC) long position liquidations surged by 419% over 24 hours to $95.96 million. As the market remains sensitive to changes in US regulatory policy, the disappearance of the CLARITY Act as a short-term positive catalyst amplified the downturn through forced liquidation of leveraged positions.

Macroeconomic and technical burdens also increased simultaneously. With the US 10-year Treasury yield remaining high near 5% and oil prices rising, the total cryptocurrency market capitalization successively broke below its 7-day moving average of $2.63 trillion and the key Fibonacci support level of $2.6 trillion. The Altcoin Season Index plummeted by 13.5% to 32, indicating a trend of funds exiting high-risk altcoins. If the market capitalization fails to recover $2.6 trillion, the 38.2% Fibonacci retracement level of $2.53 trillion is presented as the next support level.

The market's next turning point is the Fed's monetary policy decision on the 16th. With 85% of economists surveyed expecting an interest rate hike, Bitcoin's ability to defend the $74,000-$76,000 range is also considered a key variable. If this range is maintained, a short-term relief rally is possible, but if it breaks, there is a risk of a further decline to $70,000, according to analysis.

CoinMarketCap identified the CLARITY Act's rejection as the direct trigger for this sharp decline, analyzing that high leverage and worsening technical trends amplified the impact. However, on the 15th, Bitcoin spot ETFs saw net inflows on a daily basis. As the regulatory setback has materialized, the short-term direction of the market is expected to be even more sensitive to the Fed's policy stance and Bitcoin's ability to defend key support levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*